BILL NUMBER: SB 562 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 5, 1999
INTRODUCED BY Senator Poochigian
FEBRUARY 19, 1999
An act to amend Section 7280 of the Revenue and Taxation
An act to amend Section 7280 of, and to add Section
7280.3 to, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 562, as amended, Poochigian. Transient occupancy tax.
Existing law authorizes the legislative body of any city or county
to levy a tax on the privilege of occupying a room or rooms, or
other living space, in a hotel, motel, inn, or other lodging unless
the occupancy is for any period of more than 30 days.
This bill would clarify that this authorization applies to the
legislative body of a city and county and to the occupancy of
transient lodging establishments.
This bill would also provide that any tax levied pursuant to that
authorization shall apply only to the occupancy of the room or other
lodging and not to any in-room product, service, or amenity that a
guest may purchase or any goods, services, or entitlements included
in the price of the accommodations, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7280 of the Revenue and Taxation Code is
amended to read:
7280. (a) The legislative body of any city , county, or city and
county may levy a tax on the privilege of occupying a room or rooms,
or other living space, in a hotel, inn, tourist home or house, motel,
or other transient lodging establishment unless the occupancy is for
any period of more than 30 days. The tax when levied by the
legislative body of a county shall apply only to the unincorporated
areas of the county.
(b) For purposes of this section, the term "the privilege of
occupying a room or rooms, or other living space, in a hotel, inn,
tourist home or house, motel, or other lodging"
transient lodging establishment" does not include the
right of an owner of a timeshare estate in a room or rooms in a
timeshare project, or the owner of a membership camping contract in
a camping site at a campground, or the guest of the owner, to occupy
the room, rooms, camping site, or other real property in which the
owner retains that interest.
For purposes of this subdivision:
(1) "Timeshare estate" means a timeshare estate, as defined by
Section 11003.5 of the Business and Professions Code.
(2) "Membership camping contract" means a right or license as
defined by subdivision (b) of Section 1812.300 of the Civil Code.
(3) "Guest of that owner" means a person who does either of the
following:
(A) Occupies real property accompanied by the owner of either of
the following:
(i) A timeshare estate in that real property.
(ii) A camping site in a campground pursuant to a right or license
under a membership camping contract.
(B) Exercises that owner's right of occupancy without payment of
any compensation to the owner.
"Guest of that owner" specifically includes a person occupying a
timeshare unit or a camping site in a campground pursuant to any form
of exchange program.
(c) For purposes of this section, "other lodging"
transient lodging establishment" includes, but
is not limited to, a camping site or a space at a campground or
recreational vehicle park, but does not include any of the
following:
(1) Any facilities operated by a local government entity.
(2) Any lodging excluded pursuant to subdivision (b).
(3) Any campsite excluded from taxation pursuant to Section 7282.
(d) Subdivision (b) shall not affect or apply to the authority of
any city or county , county, or city and
county to collect a transient occupancy tax from timeshare
projects which were in existence as of May 1, 1985, and which
timeshare projects were then subject to such a tax
imposed by an ordinance duly enacted prior to May 1, 1985, pursuant
to this section. The act adding this subdivision shall not in any
way affect any litigation pending on or prior to December 31, 1985.
SEC. 2. Section 7280.3 is added to the Revenue and Taxation Code,
to read:
7280.3. (a) No legislative body of any city, county, or city and
county may levy a tax on the privilege of occupying a room or rooms,
or other living space, in a transient lodging establishment pursuant
to, or of the type described in, Section 7280 with respect to any
in-room product, service, or amenity that a guest may purchase, and
for which a separate charge is imposed by the innkeeper, including,
but not limited to, the purchase of the right to view an in-room
movie.
(b) Any tax levied pursuant to, or of the type described in,
Section 7280 shall apply solely to that portion of an all-inclusive
price that is applicable to the occupancy of the room accommodations
where both of the following occur:
(1) An innkeeper sells room accommodations and other goods,
services, or entitlements, including, for example, but not limited
to, admission to an amusement or theme park, or the right to make use
of golf courses or other sports facilities, under circumstances
where the other goods, services, or entitlements are all included in
one price with the price of the room accommodations.
(2) The innkeeper separately states on its internal records the
respective values of the room accommodations and the other goods,
services, or entitlements.
The innkeeper shall have no obligation to disclose to the guest,
either on the guest's folio or otherwise, the respective values of
the room accommodations and the other goods, services, or
entitlements so furnished.